Camden Property Trust priced a $300 million offering of 3.350% senior unsecured notes due Nov. 1, 2049.
The multifamily real estate investment trust issued the notes at 99.941% of par value. Interest on the notes will be paid semiannually every May 1 and Nov. 1, starting on May 1, 2020.
The REIT aims to use the net proceeds of about $296.6 million, along with cash on hand, to finance the early redemption of $250 million of its 4.625% senior notes due 2021, plus a make-whole premium and accrued and unpaid interest, and to fully repay about $45.5 million of its 4.38% secured conventional mortgage note due 2045, plus a prepayment premium and interest.
The company expects to book a one-time charge of approximately $12 million, or 12 cents per share, to its fourth-quarter net income in connection with the redemption and prepayment.
BofA Securities Inc., Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are joint book-running managers, while Deutsche Bank Securities Inc., Regions Securities LLC, Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are senior co-managers. BB&T Capital Markets and TD Securities (USA) LLC are co-managers for the offering, which is expected to close Oct. 7.
